The Schumpeterian R&D model specifies that the rate of growth of technology depends on the effort...

 

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The Schumpeterian R&D model specifies that the rate of growth of technology depends on the effort expended to innovate, invent, discover, and introduce new ideas. If this is true, as most economists believe, then we are faced with another interesting question: Does it become easier or more difficult to think of new ideas as the stock of knowledge accumulates? That is, is it easier to expand current knowledge when we already know a lot, or is there some finite set of ideas such that it becomes more and more difficult to think of new ideas the more ideas have already been thought of? Discuss. The Schumpeterian R&D model specifies that the rate of growth of technology depends on the effort expended to innovate, invent, discover, and introduce new ideas. If this is true, as most economists believe, then we are faced with another interesting question: Does it become easier or more difficult to think of new ideas as the stock of knowledge accumulates? That is, is it easier to expand current knowledge when we already know a lot, or is there some finite set of ideas such that it becomes more and more difficult to think of new ideas the more ideas have already been thought of? Discuss.

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